Examination Content Outline The following outline is a list of topics for each part of the examination. Not every topic on the list will necessarily appear on the examination and the list should not be viewed as all-inclusive. Some topics may appear in more than one examination part. This list is also available at www.prometric.com/see.
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Part 3 – Representation, Practices and Procedures 1.
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Practices and Procedures – 25 Questions
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1.1. Practice before the IRS What constitutes practice before the IRS Categories of individuals who may practice and extent of practice privileges 1.2. Requirements for Enrolled Agents Information to be furnished to the IRS Omission or error on return, document, or affidavit Rules for employing or accepting assistance from former IRS employees or disbarred/suspended persons Rules for restrictions on advertising, solicitation and fee information Fee rules (e.g., contingent, unconscionable) Due diligence requirements Conflict of interest Rules for refund check negotiation Standards for written advice, covered opinions, tax return positions and preparing returns Continuing education requirements Tax shelters Enrollment cycle and renewal Rules for prompt disposition of matters before the IRS Rules for returning a client's records and documents PTIN requirements Practitioner supervisory responsibilities (Circular 230 section 10.36) 1.3. Sanctionable acts Disreputable conduct that may result in a disciplinary proceeding Sanctions imposed by the Office of Professional Responsibility Frivolous submissions (returns and documents) Fraudulent transactions (e.g., badges of fraud) 1.4. Rules and penalties Assessment and appeal procedures for preparer penalties Types of penalties (e.g., negligence, substantial understatement, overvaluation)
Furnishing a copy of a return to a taxpayer Signing returns and furnishing identifying numbers Keeping copies or lists of returns prepared Employees engaged or employed during a return period (e.g. IRC section 6060) Preparer due diligence and penalty involving the earned income credit 2.
Representation before the IRS – 24 Questions
2.1. Power of attorney Purpose of power of attorney Signature authority (e.g., extension of assessment period, closing agreement) Authority granted by taxpayer Limitations on signing tax returns on behalf of taxpayer Proper completion of power of attorney (Form 2848) Alternate forms of power of attorney (durable) Rules for client privacy and consent to disclose Distinctions between power of attorney (Form 2848) and tax information authorization (Form8821) Requirements to be met when changing or dropping representatives or withdrawal of representative Purpose of a Centralized Authorization File (CAF) number Conference and practice requirements (Publication 216) 2.2. Building the taxpayer’s case-Preliminary work Identification of tax issue(s) with supporting details Potential for criminal aspects Competence, expertise and time to handle issue Conflict of interest Transcripts from IRS (e.g., access to and use of e-services) 2.3. Taxpayer financial situation Taxpayer's ability to pay the tax (e.g., installment agreements, offer in compromise)
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Installment agreements Types of offer in compromise Collection appeals program (e.g., denial of installment agreements, discharge applications) Collection appeals and due process (e.g., lien, levy, and Form 12153) Adjustments to the taxpayer’s account (e.g., abatements and refund offsets) Requesting an audit reconsideration (e.g., documents and forms) Decedent Issues Collection notice and Notice of Federal Tax Lien Levy and seizure of taxpayer's property Case being reported Currently Not Collectable (e.g., reasons and reactivation) IRS Collection Summons (e.g., purposes) Collections statute of limitations Trust fund recovery penalty Amended returns and claims for refund (e.g., Form 1040X, Form 843, appropriateness and timeliness) 3.2. Penalties and/or interest abatement Penalties subject to abatement Basis for having penalties abated or refunded Reasonable cause Basis for having interest abated or refunded Interest recalculation Procedures for requesting abatement 3.3. Representing a taxpayer in audits/examinations IRS authority to investigate Limited practitioner privilege (e.g., IRC section 7525) Verification and substantiation of entries on the return IRS authority to fix time and place of investigation Steps in the process (e.g., initial meeting, submission of IRS requested information) Innocent spouse Interpretation and analysis of revenue agent report (RAR) (e.g., 30-day letter) Interpretation and analysis of CP-2000 notice and Correspondence audits Explanations of taxpayer options (e.g. agree or appeal) Special procedures for partnership audits (e.g., unified audit procedures for TEFRA) Preparer conflict of interest 3.4. Representing a taxpayer before appeals Right to appeal revenue agent findings Request for appeals consideration (e.g., preparation, elements contained) Enrolled Agent appearance at appeals conference Settlement function of the appeals process Issuance of 90-day letter
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General financial health (e.g., filed for bankruptcy, lawsuits, garnishments, cash flow, assets, and insolvency) Third-party research (e.g., property assessment for municipal taxes, asset values, state and local tax information) Discharge of the tax liability in bankruptcy IRS Collection Financial Standards 2.4. Supporting documentation Financial documents (e.g., cancelled checks or equivalent, bank statements, credit card statements, receipts, brokerage records) Legal documents (e.g., birth certificate, divorce decrees, lawsuit settlements) Prior and subsequent tax returns Other substantive and contemporaneous documentation (e.g., corporate minutes) Employment reimbursement policies Business entity supporting documents (e.g., partnership agreement, corporate bylaws) Expense records (e.g., deductible, allowable, personal, mileage log) 2.5. Legal authority and references Internal Revenue Code Income tax regulations Revenue rulings Revenue procedures IRS notices Case law IRS publications Private letter ruling Form and instructions Internal Revenue Manual Authoritative versus non-authoritative source material Tax treaties and other internal agreements 2.6. Related issues Statute of limitations Post-filing correspondence (e.g., math error notices, under-reporting notices) Deadlines and timeliness requirements Third-party correspondence (e.g., witness communications, employment records) Freedom of Information Act (FOIA) requests Tax avoidance vs. tax evasion Tax return disclosure statements Taxpayer Advocate Service (e.g., criteria for requesting assistance) Identity Theft Judicial levels of representation beyond the scope of EA representation 3.
Specific Types of Representation – 19 Questions
3.1. Representing a taxpayer in the collection process Extension of time to pay (e.g., Form 1127)
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Completion of the Filing Process – 17 Questions
4.1. Accuracy Reliance on software (e.g. review of results) Inconsistencies within the source data Miscalculations Recognition of duplicate entries 4.2. Information shared with taxpayer Record-keeping requirements Significance of signature (e.g., joint and several liability, penalty of perjury) Consequences of dishonesty 4.3. Record maintenance Length of time to retain returns and records List of returns prepared (e.g. name, social security number, and type of return) EITC due diligence requirements Security of taxpayer data (e.g., electronic and paper) 4.4. Electronic filing Application process to be an e-file provider (e.g., e-services, EFIN) E-file mandate and exceptions (Form 8948) Advertising standards Definition and responsibilities of an ERO Levels of infractions Compliance requirements to continue in program EFIN revocation appeal process E-file authorization and supporting documentation (e.g. Form 8879 and Form 8453) Rejected returns and resolution (e.g. client notification) Identity theft procedures and resolution (e.g., IP PIN)
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